In terms of collection of Goods and Services Tax (GST) in the first four months of this financial year (2019-20), the backward states like Bihar, UP, Odisha and Madhya Pradesh have developed industrially developed states like Maharashtra, Gujarat, Karnataka and Tamil Nadu. Has performed better than that. During this period, the total GST collection of the country has increased by 9 percent to Rs 3.56 lakh crore. Delhi and West Bengal have lagged behind in this matter. While the northeastern states have fared the best.
Significantly, states like Bihar, Madhya Pradesh, Rajasthan, UP were once called ‘BIMARU’. The population in these backward states is very high, so consumption of all goods and services is also very high. Odisha’s GST collection has increased by 20.8 percent. After this, GST collection of Uttarakhand has increased by 19.9 percent, Bihar by 17.8 percent, MP by 14.6 percent, Assam by 14.1 percent and UP by 12 percent.
According to the media source, West Bengal is the only one in the backward states that has not performed well in the GST collection during April to July of this financial year. The GST collection in West Bengal has increased by just 6.4 percent. Delhi can be considered a laggard in this case, whose collection has fallen by 2 percent. Delhi’s GST collection in four months this year was just Rs 12,700 crore as compared to Rs 13,000 crore a year ago.
Northeast states have done much better in terms of GST collection. GST collection has increased by 39% in Nagaland, 35% in Arunachal Pradesh and 32% in Sikkim. However, according to the statistics, the total collection of these states is only a few hundred crore rupees.
Experts say that it was already predicted that GST collection will increase gradually in states where there is more consumption. However, the government is now worried that the Center will have to compensate those developed states where tax collection is decreasing.